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What is Central Limit Theorem in Supply Chain Management? PDF | Download eBooks

Learn Central Limit Theorem definition in supply chain management with explanation to study “What is Central Limit Theorem”. Study central limit theorem explanation with SCM terms to review supply chain management course for online MBA programs.

Central Limit Theorem Definition:

  • Theoretical foundation for x -charts, which states that regardless of the distribution of the population of all parts or services, the distribution of x s tends to follow a normal curve as the number of samples increases.

    Operations Management: Sustainability and Supply Chain Management by Jay Heizer, Barry Render, Chuck Munson

Central Limit Theorem Explanation:

Selection of large sample size from the selected population with very finite number of variance. The mean of these samples that is collected from the same population have approximately the equal mean of population. It further explains that the infinite number of random successive samples then the mean of those will be distributed normally.

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